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Tri Pointe combining with Weyerhaeuser subsidiary

IRVINE, Calif. (AP) -- Tri Pointe Homes Inc. is combining with Weyerhaeuser Co.'s homebuilding business in a deal valued at about $2.7 billion.

Tri Pointe said Monday that the transaction will make it one of the 10 biggest U.S. homebuilders based on estimated combined equity market value.

The deal includes about 130 million Tri Pointe shares valued at $2 billion and a payment of about $700 million in cash to Weyerhaeuser.

Weyerhaeuser will distribute ownership of Weyerhaeuser Real Estate Co. to its shareholders. That business will become a Tri Pointe subsidiary. Weyerhaeuser shareholders will receive approximately 80.5 percent of the combined company, with pre-transaction TRI Pointe shareholders owning the balance.